How organizations can prepare for 2015 data privacy legislation

On Jan. 13 the White House announced President Barack Obama’s proposal for new data privacy legislation, the Personal Data Notification and Protection Act. Many states have laws today that require corporations and government agencies to notify consumers in the event of a breach – but it is not enough. This new proposal aims to improve cybersecurity standards nationwide with the following tactics:

Enable cyber-security information sharing between private and public sectors. Government agencies and corporations with a vested interest in protecting our information assets need a streamlined way to communicate and share threat information. This component of the proposed legislation incents organizations that participate in knowledge-sharing with targeted liability protection, as long as they are responsible for how they share, manage and retain privacy data.

Modernize the tools law enforcement has to combat cybercrime. Existing laws, such as the Computer Fraud and Abuse Act, need to be updated to incorporate the latest cyber-crime classifications while giving prosecutors the ability to target insiders with privileged access to sensitive and privacy data. The proposal also specifically calls out pursuing prosecution when selling privacy data nationally and internationally.

Standardize breach notification policies nationwide. Many states have some sort of policy that requires notification of customers that their data has been compromised. Three leading examples include California , Florida’s Information Protection Act (FIPA) and MassachusettsStandards for the Protection of Personal Information of Residents of the Commonwealth. New Mexico, Alabama and South Dakota have no data breach protection legislation. Enforcing standardization and simplifying the requirement for companies to notify customers and employees when a breach occurs will ensure consistent protection no matter where you live or transact.

Invest in increasing cyber-security skill sets. For a number of years, security professionals have reported an ever-increasing skills gap in the cybersecurity profession. In fact, in a recent Ponemon Institute report, 57 percent of respondents said a data breach incident could have been avoided if the organization had more skilled personnel with data security responsibilities. Increasingly, colleges and universities are adding cybersecurity curriculum and degrees to meet the demand. In support of this need, the proposed legislation mentions that the Department of Energy will provide $25 million in educational grants to Historically Black Colleges and Universities (HBCU) and two national labs to support a cybersecurity education consortium.

This proposal is clearly comprehensive, but it also raises the critical question: How can organizations prepare themselves for this privacy legislation?

The International Association of Privacy Professionals conducted a study of Federal Trade Commission (FTC) enforcement actions. From the report, organizations can infer best practices implied by FTC enforcement and ensure these are covered by their organization’s security architecture, policies and practices:

Perform assessments to identify reasonably foreseeable risks to the security, integrity, and confidentiality of personal information collected and stored on the network, online or in paper files.

Limited access policies curb unnecessary security risks and minimize the number and type of network access points that an information security team must monitor for potential violations.

Implement and monitor compliance with policies and procedures for rendering information unreadable or otherwise secure in the course of disposal. Securely disposed information must not practicably be read or reconstructed.

Restrict third party access to personal information based on business need, for example, by restricting access based on IP address, granting temporary access privileges, or similar procedures.

The Personal Data Notification and Protection Act fills a void at the national level; most states have privacy laws with California pioneering the movement with SB 1386. However, enforcement at the state AG level has been uneven at best and absent at worse.

In preparing for this national legislation organization need to heed the policies derived from the FTC’s enforcement practices. They can also track the progress of this legislation and look for agencies such as the National Institute of Standards and Technology to issue guidance. Furthermore, organizations can encourage employees to take advantage of cybersecurity internship programs at nearby colleges and universities to avoid critical skills shortages.

With online security a clear priority for President Obama’s administration, it’s essential for organizations and consumers to understand upcoming legislation and learn the benefits/risks of sharing data. We’re looking forward to celebrating safeguarding data and enabling trust on Data Privacy Day, held annually on January 28, and hope that these tips will make 2015 your safest year yet.

Julie Lockner is responsible for business development and product marketing strategies ensuring Informatica data security and data archive solutions are aligned with the market needs and direction. Julie joined Informatica from the industry analyst firm ESG, where she served as vice president covering Big Data and data management best practices, as well as managing the end-user consulting practice. Prior to joining ESG, Julie was President and Founder of CentricInfo, a consulting firm acquired by ESG, specializing in implementing Data Governance and Data Center Optimization programs. Julie also held various sales, marketing, and engineering positions at companies such as Solix, EMC, Oracle and Raytheon.